Preheat oven to 350 degrees. Grease an 8-inch square baking dish. In a large pot, bring water and salt to a boil. Add macaroni and cook for 7 minutes, stirring occasionally. Drain. Return macaroni to pot and stir in butter or margarine until melted. Add 2 T. of cheddar cheese. In a medium bowl, beat eggs and stir in milk. Add milk mixture to pot with macaroni. Stir until well combined. Pour into prepared baking dish. Sprinkle remaining 1/2 T. of cheddar cheese on top. Sprinkle with paprika. Bake uncovered for 30 minutes or until cheese is melted and casserole is hot.